Futures Market News
U.S. soy rises on heavy Chinese demand
Mar 21, 2012 09:47 AM
Benchmark global soybean prices gained a level of support from signs of Chinese demand on Wednesday, as the value of the crop rose slightly following a heavy sell-off, Reuters reports.
According to the news outlet, China, the world's number one buyer of the commodity, is on course to import 25 percent more in the first half of 2012 than in the first six months of 2011.
"That's a pretty supportive number. In the short term, a lot is going to depend on imports, especially by China," Barclays Capital analyst Sudakshina Unnikrishnan told Reuters. "The fact you're having record high prices domestically and the government is stockpiling does seem to suggest that in terms of pricing arbitrage, this is a pretty positive time for Chinese buyers to be making purchases on the international market."
Soybeans were up 0.06 percent on the Chicago Board of Trade at the opening of the markets on Wednesday, as the price reached $13.45 a bushel.
Bloomberg News reports that soybeans may rise further on speculation that next week's U.S. Department of Agriculture planting report will show that farmers did not increase the planting of oilseeds.
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